154 UNITED HAMPSHIRE US REIT Key audit matter How the matter was addressed in the audit Fair Valuation and Disclosures of Fair Value for Investment Properties The Group owns a portfolio of investment properties comprising grocery and necessity properties and self-storage properties across the United States. These investment properties represent the single largest category of assets with a carrying amount of US$794,088,000 as at 31 December 2025. The Group has adopted the fair value model under IAS 40 Investment Property which requires all the investment properties to be measured at fair value, and has engaged external independent valuers (“Valuers”) to perform the fair value assessment for all of its investment properties. The fair valuation of investment properties is considered to be a matter of significance to our audit as the valuation process requires the application of judgement in determining the appropriate valuation methodology to be used, and the use of subjective assumptions and various unobservable inputs. The fair valuations are sensitive to certain key inputs applied in deriving the underlying cash flows, discount rates and capitalisation rates where a change in these inputs can result in changes in the fair valuations of the investment properties. The valuation techniques, their key inputs and the interrelationships between the inputs and the valuation have been disclosed in Note 7 to the consolidated financial statements. We have assessed the Group’s process of appointing and determining the scope of work of the Valuers, as well as the process of reviewing, and accepting the Valuers’ investment property valuations. We have reviewed the qualifications, competence, independence, and the terms of the engagement of the Valuers with the Group to determine whether there are any matters which might affect the objectivity of the Valuers or impede their scope of work. We have held discussions with management and the Valuers on the valuation reports, and have engaged our valuation specialists to assist in: • Assessing the valuation methodology, key assumptions and inputs used by the Valuers against general market practice for similar types of properties; • Comparing key valuation assumptions and the underlying cash flows, discount and capitalisation rates to historical rates, and available industry data for comparable markets and properties; and • Reviewing the integrity of the valuation calculations and inputs, including review of lease schedules and lease agreements. We have also assessed the adequacy and appropriateness of the disclosures made in the consolidated financial statements. Independent Auditor’s Report To the Unitholders of United Hampshire US Real Estate Investment Trust
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